Consultation on financial thresholds in charity law

The Law Commission’s 2017 report ‘Technical Issues in Charity Law’ recommended that the government periodically review all financial thresholds in the Charities Act 2011 (“the 2011 Act”) with a view to increasing them in line with inflation. The government accepted this recommendation, and committed to conducting a review at least every 10 years, subject to resources.

Reviewing the financial thresholds in charity law ensures that charities continue to be sufficiently transparent and accountable, helping the public to continue to trust that their donations to charities are being used effectively for the benefit of the public. The regulatory landscape must also be proportionate and reduce unnecessary administrative burdens on charities where possible, particularly for small organisations.